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An economic and political union established in 1993 after the ratification of the
Maastricht Treaty by members of the European Community, which forms its
core. In establishing the European Union, the treaty expanded the political
scope of the European Community, especially in the area of foreign and
security policy, and provided for the creation of a central European bank and
the adoption of a common currency by the end of the 20th century.
Organizational structure
EC, which is The core of the EU, originally referred to the group of Western
European nations that belonged to each of three treaty organizations—the
European Coal and Steel Community (ECSC), the European Economic
Community (EEC), and the European Atomic Energy Community (Euratom).
In 1967 these organizations were consolidated under a comprehensive
governing body composed of representatives from the member nations and
divided into four main branches—the European Commission (formerly the
Commission of the European Communities), the Council of the European
Union (formerly the Council of Ministers of the European Communities), the
European Parliament, and the Justice. Although the EU has no single seat of
government, many of its most important offices are in Brussels, Belgium. The
European Commission, which has executive and some legislative functions, is
headquartered there, as is the Council of the European Union; it is also where
the various committees of the European Parliament generally meet to prepare
for the monthly sessions in Strasbourg, France. In addition to the four main
branches of the EU's governing body, there are the Court of Auditors, which
oversees EU expenditures; the Economic and Social Committee, a consultative
body representing the interests of labor, employers, farmers, consumers, and
other groups; and the European Council, a consultative but highly influential
body composed primarily of the president of the Commission and the heads of
government of the EU nations and their foreign ministers.
Evolution
The history of the EU began shortly after World War II, when there developed
in Europe a strong revulsion against national rivalries and parochial loyalties.
While postwar recovery was stimulated by the Marshall Plan, the idea of a
united Europe was held up as the basis for European strength and security and
the best way of preventing another European war. In 1950 Robert Schuman,
France's foreign minister, proposed that the coal and steel industries of France
and West Germany be coordinated under a single supranational authority.
France and West Germany were soon joined by four other countries—Belgium,
Luxembourg, the Netherlands, and Italy—in forming (1952) the ECSC. The
EEC (until the late 1980s it was known informally as the Common Market) and
EURATOM were established by the Treaty of Rome in 1958. The EEC,
working on a large scale to promote the convergence of national economies into
a single European economy, soon emerged as the most significant of the three
treaty organizations.
The Brussels Treaty (1965) provided for the merger of the organizations into
what came to be known as the EC and later the EU. Under Charles de Gaulle,
France vetoed (1963) Britain's initial application for membership in the
Common Market, five years after vetoing a British proposal that the Common
Market be expanded into a transatlantic free-trade area. In the interim, Britain
had engineered the formation (1959) of the European Free Trade Association.
In 1973 the EC expanded, as Great Britain, Ireland, and Denmark joined.
Greece joined in 1981, and Spain and Portugal in 1986. With German
reunification in 1990, the former East Germany also was absorbed into the
Community.
The Single European Act (1987) amended the EC's treaties so as to strengthen
the organization's ability to create a single internal market. The Treaty of
European Union, signed in Maastricht, the Netherlands, in 1992 and ratified in
1993, provided for a central banking system, a common currency to replace the
national currencies (the euro, see European Monetary System), a legal
definition of the EU, and a framework for expanding the EU's political role,
particularly in the area of foreign and security policy. The member countries
completed their move toward a single market in 1993 and agreed to participate
in a larger common market, the European Economic Area (est. 1994), with most
of the European Free Trade Association (EFTA) nations. In 1995, Austria,
Finland, and Sweden, all former EFTA members, joined the EU, but Norway
did not, having rejected membership for the second time in 1994.
A crisis within the EU was precipitated in 1996 when sales of British beef were
banned because of “mad cow disease” .Britain retaliated by vowing to paralyze
EU business until the ban was lifted, but that crisis eased when a British plan
for eradicating the disease was approved. The ban was lifted in 1999, but
French refusal to permit the sale of British beef resulted in new strains within
the EU. In 1998, as a prelude to their 1999 adoption of the euro, 11 EU nations
established the European Central Bank; the euro was introduced into circulation
in 2002 by 12 EU nations.
The EU was rocked by charges of corruption and mismanagement in its
executive body, the European Commission (EC), in 1999. In response the EC's
executive commission including its president, Jacques Santer, resigned, and a
new group of commissioners headed by Romano Prodi was soon installed. In
actions taken later that year the EU agreed to absorb the functions of the
Western European Union, a comparatively dormant European defense alliance,
thus moving toward making the EU a military power with defensive and
peacekeeping capabilities.
In 2003 the EU and ten non-EU European nations (Estonia, Latvia, Lithuania,
Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Cyprus, and Malta)
signed treaties that resulted in the largest expansion of the EU the following
year, increasing the its population by 20% and its land area by 23%. Most of the
newer members are significantly poorer than the largely W European older
members. The old and new member nations at first failed to agree on a
constitution for the organization; the main stumbling block concerned voting,
with Spain and Poland reluctant to give up a weighted system of voting
scheduled for 2006 that would give them a disproportionate influence in the EU
relative to their populations. In Oct., 2004, however, EU nations signed a
constitution with a provision requiring a supermajority of nations to pass
legislation. The constitution, which must be ratified by all members to come
into effect, was rejected by voters in France and the Netherlands in 2005,
leading EU leaders to pause in their push for its ratification.
European flag
Motto: In varietate concordia
(Latin: Unity in diversity)
Anthem: Ode to Joy (orchestral)
Capital Brussels
GDP (2005) Ranked 1st3
- Total (PPP) $12,329,110 million
- Per capita (PPP) $26,900
Euro (EUR or €)4
Other currencies:
British pound (GBP or £),
Cyprus pound (CYP or C£),
Czech koruna (CZK or Kč),
Danish krone (DKK or kr),
Estonian kroon (EEK or kr),
Currencies Hungarian forint (HUF or Ft),
Latvian lat (LVL or Ls),
Lithuanian litas (LTL or Lt),
Maltese lira (MTL or Lm),
Polish złoty (PLN or zł),
Slovak koruna (SKK or Sk),
Slovene tolar (SIT),
Swedish krona (SEK or kr)
The European Union or the EU is an intergovernmental and supranational
union of 25 European countries, known as member states. Two new member
states will join in 2007 - Romania and Bulgaria. The European Union was
established under that name in 1992 by the Treaty on European Union (the
Maastricht Treaty). However, many aspects of the Union existed before that
date through a series of predecessor relationships, dating back to 1951.
The European Union's activities cover all areas of public policy, from health
and economic policy to foreign affairs and defense. However, the extent of its
powers differs greatly between areas. Depending on the area in question, the
EU may therefore resemble:
Year Country
1952 Belgium, France, West Germany, Italy, Luxembourg, The Netherlands
(founding members)
1973 Denmark, Ireland, United Kingdom
1981 Greece
1986 Portugal, Spain
1990 East Germany reunites with West Germany and becomes part of the EU
1995 Austria, Finland, Sweden
2004 Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta,
Poland, Slovakia, Slovenia
2007 Romania, Bulgaria
Note:
• Greenland, which was granted home rule by Denmark in 1979, left the
European Community in 1985, following a referendum.
• Romania and Bulgaria will join the EU on 1 January 2007
The European Communities are one of the three pillars of the European Union,
being both the most important pillar and the only one to operate primarily
through supranational institutions. The other two "pillars" – Common Foreign
and Security Policy, and Police and Judicial Co-operation in Criminal Matters –
are looser intergovernmental groupings. Confusingly, these latter two concepts
are increasingly administered by the Community (as they are built up from
mere concepts to actual practice).
Evolution of the structures of the European Union.
Single market
Many of the policies of the EU relate in one way or another to the development
and maintenance of an effective single market. Significant efforts have been
made to create harmonized standards – which are designed to bring economic
benefits through creating larger, more efficient markets.
The power of the single market reaches beyond the EU borders, because to sell
within the EU, it is beneficial to conform to its standards. Once a non-member
country's factories, farmers and merchants conform to EU standards, much of
the cost of joining the union has already been sunk. At that point, harmonizing
domestic laws in order to become a full member is relatively painless, and may
create more wealth through eliminating the customs costs.
Internal policies
• Free trade of goods and services among member states (an aim further
extended to three of the four EFTA states by the European Economic
Area, EEA)
• A common EU competition law controlling anti-competitive activities of
companies (through antitrust law and merger control) and member states
(through the State Aids regime).
• The Schengen treaty allowed removal of internal border controls and
harmonization of external controls between its member states. This
excludes the UK and Ireland, which have derogations, but includes the
non-EU members Iceland and Norway. Switzerland also voted via
referendum in 2005 to become part of the Schengen zone.
• Freedom for citizens of its member states to live and work anywhere
within the EU with their spouses and children, provided they can support
themselves (also extended to the other EEA states).
• Free movement of capital between member states (and other EEA states).
• Harmonization of government regulations, corporations law and
trademark registrations.
• A single currency, the Euro (excluding the UK, and Denmark, which
have derogations). Sweden, although not having a specific opt-out clause,
has not joined the ERM II, voluntarily excluding itself from the monetary
union.
• A large amount of environmental policy co-ordination throughout the
Union.
• A Common Agricultural Policy and a Common Fisheries Policy.
• Common system of indirect taxation, the VAT, as well as common
customs duties and excises on various products.
• Funding for the development of disadvantaged regions (structural and
cohesion funds).
External policies
If considered a single unit, the European Union has the largest economy in the
world with a 2004 GDP of 11,723,816 million USD using PPP equivalence.
The EU economy is expected to grow further over the next decade as more
countries join the union - especially considering that the new states are usually
poorer than the EU average, and have the capacity to grow at a high rate.
However, it is estimated that the euro zone will only grow around 0.3 per cent
(Q2 2005) 1, while other industrialized nations will grow faster, such as the
United States, which is estimated to grow three times as much at around 3.2%
(Q2 2005). The European Council published on 17 November 2005 that the
economy of the European Union will have grown approximately 1.5% in 2005.
The euro zone however, will have grown 1.3% in 2005. The European Council
is hopeful that the European Union will grow further in 2006 and in 2007 (2.1%
2006 2.4% 2007). Germany, the largest economy in the EU, will grow about:
0.8% 2005, 1.2% 2006 and 1.6% 2007. After extremely slow growth, it seems
that the EU will grow again in the next couple of years.
References:
www.answer.com
• Dictionary definition of European Union
The American Heritage® Dictionary of the English Language, Fourth Edition
• Encyclopedia information about European Union
The Columbia Electronic Encyclopedia, Sixth Edition Copyright © 2003,
• Wikipedia information about European Union
This article is licensed under the GNU Free Documentation License
• Word Net information about European Union
Word Net 1.7.1 Copyright © 2001 by Princeton University. All rights reserved. More
from Word Net
Encyclopedia
North American Free Trade Agreement (NAFTA), accord establishing a free-
trade zone in North America; it was signed in 1992 by Canada, Mexico, and the
United States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs
on the majority of goods produced by the signatory nations. It also calls for the
gradual elimination, over a period of 15 years, of most remaining barriers to
cross-border investment and to the movement of goods and services among the
three countries. Major industries affected include agriculture, automobile and
textile manufacture, telecommunications, financial services, energy, and
trucking. NAFTA also provides for labor and environmental cooperation among
member countries. The pact contains provisions for the inclusion of additional
member nations. Labor representatives have criticized NAFTA, claiming the
agreement has led to numerous jobs lost in the United States because industries
have moved plants to Mexico; NAFTA proponents point to the U.S. jobs
created because of increased imports by Mexico and Canada. The agreement
has negatively affected the economies of several Caribbean countries whose
exports to the United States now compete with duty-free Mexican exports.
Investment
A trade agreement between Canada, the United States and Mexico that
encourages free trade between these North American countries.
Politics
An agreement between the United States, Canada, and Mexico to establish free
trade. It took effect in 1994 and is designed to eliminate trade barriers between
the three nations by 2009. Many American labor unions oppose NAFTA on
the grounds that it takes away jobs from American workers as manufacturers
relocate in Mexico to take advantage of cheaper labor. Others argue that free
trade creates more jobs in the United States than it destroys.
Official Emblem
The United States and Canada have been arguing for years over the United
States' decision to impose a 27% duty on Canadian softwood lumber imports.
Canada has filed numerous motions to have the duty eliminated and the
collected duties returned to Canada. Canada has won every case brought before
the NAFTA tribunal, the last being on August 10, 2005. The United States
responded by saying "We are, of course, disappointed with the [NAFTA
panel's] decision, but it will have no impact on the anti-dumping and
countervailing duty orders," (Neena Moorjani, spokeswoman for U.S. Trade
Representative Rob Portman). The failure of the U.S. to adhere to the terms of
the treaty has generated widespread political debate in Canada. The debate
includes imposing countervailing duties on American products, and possibly
shutting off all or some energy shipments, such as natural gas.
Effects
Controversy
Since NAFTA was signed, it has been difficult to analyze its macroeconomic
effects due to the large number of other variables in the global economy.
Various economic studies have generally indicated that rather than creating an
actual increased trade, NAFTA has caused trade diversion, in which the
NAFTA members now import more from each other at the expense of other
countries worldwide. Some economists argue that NAFTA has increased
concentration of wealth in both Mexico and the United States.
Canada
In Canada a large amount of the opposition to NAFTA comes from fears over
the possible effects of various clauses and articles of the treaty. For example, if
something is sold even once as a commodity, the government cannot stop its
sale in the future. This of course applies to the water from Canada's Great Lakes
and rivers, fueling fears over the possible destruction of Canadian ecosystems
and Canada's water supply. Other fears come from the effects NAFTA has had
on Canadian law making. In 1996, MMT, a chemical additive that some studies
had linked to nerve damage, was brought into Canada by an American
company. The Canadian government banned the importation of the additive but,
when sued by the American company, was forced to settle out of court. The
American company argued that their additive had not been conclusively linked
to any health dangers, and that the prohibition was damaging to their company.
Language
From the perspective of North American consumers, one of the effects of
NAFTA has been the significant increase in bilingual or even trilingual labeling
on products, for simultaneous distribution through retailers in Canada, the U.S.,
and Mexico in French, English, and Spanish.
Wikipedia.com
With reference
North American Free Trade Agreement
"NAFTA" is also an abbreviation for the
“New Zealand Australia Free Trade Agreement”.
References
• Greider, William (1997). One World, Ready or Not. Penguin Press. ISBN
0-713-99211-5.
• During 2004. Source: CIA World Factbook 2005, IMF WEO Database
• Public Citizen's Report on NAFTA
• George Bush Presidential Library and Museum
(Abbr. ASEAN)
The ASEAN region has a population of about 500 million, a total area of
4.5 million square kilometers, a combined gross domestic product of
US$737 billion, and a total trade of US$ 720 billion.
OBJECTIVES
The ASEAN Declaration states that the aims and purposes of the
Association are: (i) to accelerate the economic growth, social progress
and cultural development in the region through joint endeavors in the
spirit of equality and partnership in order to strengthen the foundation for
a prosperous and peaceful community of Southeast Asian nations, and
(ii) to promote regional peace and stability through abiding respect for
justice and the rule of law in the relationship among countries in the
region and adherence to the principles of the United Nations Charter.
The Association represents the collective will of the nations of to bind themselves together in
friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples
and for posterity the blessings of peace, freedom, and prosperity. (The ASEAN Declaration,
Bangkok, 8 August 1967)
Fundamental Principles
The Treaty of Amity and Cooperation (TAC) in Southeast Asia, signed at
the First ASEAN Summit on 24 February 1976, declared that in their
relations with one another, the High Contracting Parties should be
guided by the following fundamental principles:
POLITICAL COOPERATION
The TAC stated that ASEAN political and security dialogue and
cooperation should aim to promote regional peace and stability by
enhancing regional resilience. Regional resilience shall be achieved by
cooperating in all fields based on the principles of self-confidence, self-
reliance, mutual respect, cooperation, and solidarity, which shall
constitute the foundation for a strong and viable community of nations in
Southeast Asia.
When ASEAN was established, trade among the Member Countries was
insignificant. Estimates between 1967 and the early 1970s showed that
the share of intra-ASEAN trade from the total trade of the Member
Countries was between 12 and 15 percent. Thus, some of the earliest
economic cooperation schemes of ASEAN were aimed at addressing
this situation. One of these was the Preferential Trading Arrangement of
1977, which accorded tariff preferences for trade among ASEAN
economies. Ten years later, an Enhanced PTA Programme was
adopted at the Third ASEAN Summit in Manila further increasing intra-
ASEAN trade.
In 1997, the ASEAN leaders adopted the ASEAN Vision 2020, which
called for ASEAN Partnership in Dynamic Development aimed at forging
closer economic integration within the region. The vision statement also
resolved to create a stable, prosperous and highly competitive ASEAN
Economic Region, in which there is a free flow of goods, services,
investments, capital, and equitable economic development and reduced
poverty and socio-economic disparities. The Hanoi Plan of Action,
adopted in 1998, serves as the first in a series of plans of action leading
up to the realization of the ASEAN vision.
In a nut shell ASIAN is strongest economic power in the Asia as Kofi Annan
said,
“Today, ASEAN is not only a well-functioning, indispensable reality in
the region. It is a real force to be reckoned with far beyond the region.
It is also a trusted partner of the United Nations in the field of
development…”
Kofi Annan
Secretary-General of the United Nations
16 February 2000
REFERENCE
• Wikipedia information about ASEAN Free Trade Area
This article is licensed under the GNU Free Documentation License
• www.answer.com
• www.aseansec.org